What is MIP (Mortgage Insurance Premium)?

MIP (Mortgage Insurance Premium) Definition

MIP (Mortgage Insurance Premium) consists of annual payments on HUD mortgages. MIP is first paid at closing, and typically costs 1% of the loan amount, though this varies. MIP for HUD multifamily loan programs must then be paid annually. Specific costs also vary by program.

For example, MIP requirements for the HUD 223(a)(7) loan include:

  • Market Rate Properties: 0.50% upfront, 0.50% annually

  • Affordable Properties: 0.35% upfront, 0.35% annually

  • Green MIP Properties: 0.25% upfront, 0.25%
    annually

In contrast, HUD 221(d)(4) MIP requirements include:

  • Market Rate Properties: 0.65% upfront, 0.65% annually

  • Affordable Properties: 0.45% upfront, 0.45% annually

  • Section 220 Properties: 0.70% upfront, 0.70% annually

  • Green MIP Properties: 0.25% upfront, 0.25%
    annually


To learn more about the HUD 223a7 refinance program, fill out the form below to speak to a HUD/FHA loan expert.